You can choose one of three boxes You can choose one of three boxes. Box A has four $5 bills and a single $100 bill, box B has 400 $5 bills and 100 $100 bills, and box C has 24 $1 bills. You can have all of box C or blindly pick one bill out of either box A or box B. Which offers you the greatest expected winning? A) Box A B) Box B C) Box C D) Either A or B, but not C E) All offer the same expected winning

A state lottery game consists of a player choosing a three digit number (repeats are allowed). The lottery commission randomly selects three digits each evening. Any ticket that matches all three digits in the correct order wins $500. The cost per ticket is $1. Construct a probability distribution, then calculate the expected value for a single lottery ticket.

Gain Communication sells aircraft communication units to both the military and civilian companies. The military division estimates its sales as follows: Units sold 1000 3000 5000 10,000 Probability 0.1 0.3 0.4 0.2 Calculate the mean and the standard deviation for the number of parts sold to the military.

The Law of Large Numbers Every population has a defined and finite mean µ. We can determine how accurately we want to estimate µ. Draw repeated random and independent observations from the population. The mean of the observations will eventually approach µ as closely as specified and then will remain that close.

So how large is “large”. There is no standard answer to this question So how large is “large”? There is no standard answer to this question. The definition of “large” depends upon the variability of the outcomes. The more variability that exists among the outcomes, the greater number of trials required before our observed mean settles near the population mean.

What about the law of small numbers? There is no such thing.

You can choose one of three boxes You can choose one of three boxes. Box A has four $5 bills and a single $100 bill, box B has 400 $5 bills and 100 $100 bills, and box C has 24 $1 bills. You can have all of box C or blindly pick one bill out of either box A or box B. Which offers you the greatest expected winning? A) Box A B) Box B C) Box C D) Either A or B, but not C E) All offer the same expected winning

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